The Nigerian National Petroleum Company Limited (NNPCL) has formally agreed to allow independent oil marketers, represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN), to begin lifting Premium Motor Spirit (PMS) at a reduced price from its depots. This development comes as part of efforts to resolve ongoing tensions regarding the high costs associated with petroleum product loading and distribution.
In addition, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has committed to issuing import and off-taker licenses to oil marketers. This will enable them to either import fuel directly or purchase products from the Dangote Refinery, aligning with the federal government’s plan to fully deregulate the oil sector.
IPMAN had previously expressed frustrations over the price disparity between what NNPCL paid for fuel from the Dangote Refinery—₦898 per litre—and what independent marketers were being charged, which was ₦1,010 per litre in Lagos and even higher in other regions. The association threatened to cease operations nationwide unless the issue was addressed and also demanded a refund from NNPCL for previous payments made by its members.
A resolution was reached after a peace meeting mediated by the Director General of the Department of State Services (DSS), Adeola Ajayi, alongside NNPCL’s Group Chief Executive Officer, Mele Kyari, and a representative from NMDPRA. The agreement includes the immediate release of products worth ₦15 billion to cover the debt owed to independent marketers.
IPMAN National Publicity Secretary, Chinedu Ukadike, expressed satisfaction with the outcome, noting that NNPCL had agreed to reduce prices for independent marketers. Additionally, NMDPRA has committed to issuing IPMAN import licenses, a move that will facilitate full deregulation in the sector.
While the NMDPRA spokesperson, George Ene-Ita, claimed not to have knowledge of the license approval, Ukadike confirmed that the agreement represents a significant step toward resolving the ongoing issues between the association and NNPCL. Furthermore, the NMDPRA has agreed to make a ₦10 billion payment to the oil marketers for outstanding Petroleum Equalisation Fund payments.
